Stunting and its association with education and cognitive outcomes in adulthood: A longitudinal study in Indonesia.

BACKGROUND: Stunting is associated with adverse outcomes in adulthood. This article specifically aims to analyse the relationship between childhood stunting and education as well as cognitive outcomes for adults in Indonesia. METHODS: Pooled data from wave one (1) and two (2) of the Indonesia Family Life Survey (IFLS) in 1993 and 1997 identified a sub-sample of 4,379 children aged 0-5 by their height-for-age (HAZ) to be compared for their differences in educational outcomes and cognitive abilities in 2014. HAZ was used to proxy relative height to determine stunting status based on 2006 WHO child's growth standards. Education and cognitive abilities outcomes include years of schooling, age of school entry, grade repetition, and scores for cognitive and math tests. The study employs estimation models of pooled regressions and instrumental variable (IV) to address problems of endogeneity and bias from omitted variables. RESULTS: Stunting and relatively small stature had significant associations with cognitive development, and they worked as intermediaries to cognitive developmental barriers as manifested in reduced educational outcomes. A lack of one SD in HAZ was associated with 0.6 years shortened length of the school, 3% higher chances of dropouts from secondary school, and 0.10-0.23 SD lowered cognitive and numerical scores. Similarly, stunting is associated with decrease cognitive test scores by 0.56-0.8 SD compared to non-stunting, two years less schooling, and 0.4 years of delayed entry to school. As for cognitive abilities, stunting is associated with lower cognitive and numerical abilities by 0.38-0.82 z-scores. CONCLUSION: Growth retardation during childhood in Indonesia was associated with lower cognitive abilities, particularly during school age, and this correlation faded as individuals grew up. Subsequently, growth retardation is significantly linked to lower educational outcomes. Impaired growth has implications for reduced lifetime earnings potential mediated by diminished cognitive capacity and lower educational attainment. The finding suggests that development in Indonesia during recent decades has not provided an adequate environment to enable children to achieve their potential educational outcomes.

Impact assessment of the EU import ban on Indonesian palm oil: Using environmental extended multi-scale MRIO.

Under the Renewable Energy Directive (RED) II, the EU will phase out the use of palm oil for biodiesel feedstock. Environmental concerns are the main reasons for the EU to implement this initiative. This study analyzes the economic and environmental impact of EU import ban to Indonesia at provincial level, using 2 scenarios (a direct and direct-indirect import ban). The analysis is performed using a global-subnational Multi-Regional Input-Output (MRIO) with environmental extensions. This study shows that a direct (combined) import ban of palm oil by the EU will reduce Indonesia's GDP by -0.2 % (-0.26 %) and employment by -0.12 % (-0.54 %) from baseline. At provincial level, Riau, North Sumatra, Lampung, Central Kalimantan and South Kalimantan experience the highest impact on their domestic product (more than -0.5 %). Under a direct import ban, job losses mostly happen in outside Java (96.26 %) and in the oilseeds sector (75.21 %). Low and middle skilled jobs decline more than high skilled jobs and count for 95 % of the total loss. This study also shows that a direct (combined) import ban reduces national GHG emissions by -0.19 % (-0.24 %) and total land use by -0.48 % (-0.6 %). Potential carbon sequestration can be 34.55 (42.27) million tons C equivalent to 149.74 (182.67) million tons CO2e under assumption a full rewilding from the reduction of land use in oilseed. Our study shows that an EU import ban on Indonesian palm oil has relatively small economic and environmental impacts at national and provincial level. Yet, this policy can create potential carbon sequestration that can absorb CO2 by vegetation and soil.

Structuring economic incentives to reduce emissions from deforestation within Indonesia.

We estimate and map the impacts that alternative national and subnational economic incentive structures for reducing emissions from deforestation (REDD+) in Indonesia would have had on greenhouse gas emissions and national and local revenue if they had been in place from 2000 to 2005. The impact of carbon payments on deforestation is calibrated econometrically from the pattern of observed deforestation and spatial variation in the benefits and costs of converting land to agriculture over that time period. We estimate that at an international carbon price of $10/tCO(2)e, a "mandatory incentive structure," such as a cap-and-trade or symmetric tax-and-subsidy program, would have reduced emissions by 163-247 MtCO(2)e/y (20-31% below the without-REDD+ reference scenario), while generating a programmatic budget surplus. In contrast, a "basic voluntary incentive structure" modeled after a standard payment-for-environmental-services program would have reduced emissions nationally by only 45-76 MtCO(2)e/y (6-9%), while generating a programmatic budget shortfall. By making four policy improvements--paying for net emission reductions at the scale of an entire district rather than site-by-site; paying for reductions relative to reference levels that match business-as-usual levels; sharing a portion of district-level revenues with the national government; and sharing a portion of the national government's responsibility for costs with districts--an "improved voluntary incentive structure" would have been nearly as effective as a mandatory incentive structure, reducing emissions by 136-207 MtCO(2)e/y (17-26%) and generating a programmatic budget surplus.